Halliburton Co. Receives Strong Buy Rating from Top Analyst as Q1 Earnings Beat Expectations

TD Cowen's Marc Bianchi raised their price target on Halliburton Co (NYSE: HAL) by 2.1% from $47 to $48 on April 24, 2024. The analyst maintained their Strong Buy rating on the stock. This update comes after the company's Q1 2024 earnings report, which was released on April 23, 2024. According to Bianchi, Halliburton Co "posted a slight beat and although Q2's guidance missed the consensus, the company consistently beats guidance."

In the first quarter of 2024, Halliburton Co reported earnings per share (EPS) of $0.76, surpassing the Zacks Consensus Estimate of $0.74 cents and showing a 5.6% increase compared to Q1 2023's $0.72. Revenue for the quarter stood at $5.8 billion, beating the Zacks Consensus Estimate of $5.7 billion and representing a 2.2% increase over Q1 2023's $5.68 billion. Additionally, the company reported cash flow from operations of $487 million, a significant improvement compared to Q1 2023's $122 million. Free cash flow also showed positive growth, reaching $206 million, up from the negative $105 million reported in Q1 2023. Halliburton Co also repurchased $250 million in stock during the quarter.

Although management did not provide financial guidance in its press release, Chairman, President & CEO Jeff Miller expressed satisfaction with the company's performance. Miller stated, "Halliburton delivered solid Q1 results that again demonstrated the power of our strategy and the strength of our execution." He further highlighted the recovery of activity in North America from the previous quarter's low and the international business's 11th consecutive quarter of year-over-year growth. Miller also expressed confidence in the strength and duration of the current upcycle, based on customers' multi-year activity plans.

Following Bianchi's update, Citigroup's Scott Gruber also issued an update on Halliburton Co on April 24, 2024. Gruber raised the price target by 11.1%, from $45 to $50, while maintaining a Strong Buy rating on the stock.

According to data from WallStreetZen, 100% of top-rated analysts currently rate Halliburton Co as a Strong Buy or Buy, with no analysts seeing it as a Hold or recommending selling the stock. The consensus forecast among analysts is that Halliburton Co will deliver earnings per share (EPS) of $3.19 in the upcoming year. If the analysts' predictions hold true, this would represent a 9.9% increase on a year-over-year basis.

Since the release of Halliburton Co's latest quarterly report on April 23, 2024, the stock price has increased by 0.3%. Looking at the year-over-year performance, the stock has shown a growth of 12.3%. However, during this period, Halliburton Co has trailed behind the S&P 500, which has experienced a 22.6% increase.

Marc Bianchi, the TD Cowen analyst who raised the price target on Halliburton Co, is ranked in the top 20% of 4,563 Wall Street analysts by WallStreetZen. With an average return of 10.2% and a win rate of 52.8%, Bianchi specializes in the Energy, Industrials, and Basic Materials sectors.

Halliburton Company, an oilfield-services company, offers a range of services including cementing, completion equipment, pressure pumping, and drilling services. With headquarters in Houston, TX and Dubai, UAE, the company operates through numerous subsidiaries, affiliates, branches, brands, and divisions in the United States and internationally. Founded in the 1920s, Halliburton has established itself as a prominent player in the industry.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.